Friday, May 25, 2007 State oil firm signs pact with UK company
THE Philippine National Oil Company-Alternative Fuels Corporation (PNOC-AFC) has entered into memorandum of agreement (MOA) with the London-based firm NRG Chemical Engineering Pte Ltd., for the plantation and production of alternative fuels, particularly bio-diesel.
PNOC-AFC president Peter Abaya said NRG is planning to put up a bio-diesel refinery plant in the PNOC-AFC techno park while the plantation is still being determined but they are also looking at Mindanao.
Abaya said NRG sees the potential of jathropa and other fedstocks in the country for the production of bio-diesel and bio-ethanol.
He also said since the country's demand would not be that big, part of the output will be exported in Europe and China. "They will produce some for local consumption but they're seeing a lot of demands in Europe and China," Abaya told reporters.
Abaya clarified that while the PNOC has committed to infuse capital for the project, their participation would only be "minimal".
NRG corporate adviser Chris de Lavigne said they are planning to put up the bio-refinery complex, which will have an initial capacity of 500,000 tons before the end of the year. "So before the end of 2007, we are looking at completing our first bio-diesel plant. The plantation will obviously take longer to plant and we're looking at the 100-hectares over about six to eight years to plant. The 3.5 million tons of capacity will be targeted for completion within three years," Lavigne said.
"With regard to the jathropa plantation there are many areas that have been identified but it will predominantly be in Mindanao. But there is a lot of land in the country, which what makes the Philippines very attractive to plant jathropa and the weather is very attractive to plant jathropa," de Lavign added.
He said the P58.5 billion or US$1.5 billion investment will be for the whole project, which includes the refinery which will cost US$450 million, the jathropa plantation will cost US$600 million and the rest will be for the ethanol plant. (MSN/Sunnex)
